DLTR

Raymond James upgraded Dollar Tree to 'Outperform' with a $140 price target, implying about 13% upside. The firm said the retailer's fiscal 2026 guidance appears conservative, leaving room for upside in earnings. Goldman Sachs also upgraded Dollar Tree to 'Neutral', raising its price target to $125, citing improved price perception. Dollar Tree Inc. (DLTR) drew bullish calls from two Wall Street firms, which said conservative earnings guidance, a strong balance sheet and potential cost tailwinds could drive upside even as store traffic remains under pressure. Raymond James upgraded Dollar Tree to ‘Outperform’ from ‘Market Perform’ and assigned a $140 price target, implying a 13% upside to the stock’s last closing price. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox The firm said the stock now offers a more attractive balance between risk and potential reward. According to Raymond James, Dollar Tree's fiscal 2026 earnings outlook appears cautious, leaving room for stronger-than-expected results if lower fuel costs, possible tariff refunds and share repurchases provide additional support. For fiscal 2026, the company expects revenue between $20.5 billion and $20.7 billion, driven by 3%-4% comparable-store sales growth. It plans to open about 400 new stores while closing around 75 locations. The company also sees adjusted earnings of $6.70 to $7.10 per diluted share. The analyst added that these factors could benefit the company even if customer visits do not rebound immediately. Dollar Tree’s stock edged 0.5% lower overnight ahead of Thursday. Goldman Sachs also became more constructive, upgrading the stock to ‘Neutral’ from ‘Sell’ while increasing its price target to $125 from $105. The firm pointed to improving customer perceptions around pricing and value, along with the retailer's healthy cash position and the possibility of tariff-related reimbursements as positive developments. However, the firm maintained a measured outlook, noting that store traffic remains soft, customer performance indicators have yet to return to historical levels and intense competition among value-oriented retailers continues to pressure the sector. The company is scheduled to report its Q2 earnings in September, with analysts projecting $4.85 billion in revenue and $1.09 per share in earnings. On...

Investing.com -- Dollar Tree received a pair of analyst upgrades on Wednesday, with brokerages pointing to improving consumer sentiment, tariff-related tailwinds and a stronger earnings outlook, even as store traffic remains under pressure. Raymond James upgraded the discount retailer to Outperform from Market Perform and set a $140 price target, arguing that the company’s fiscal 2026 guidance appears conservative and does not account for potential benefits from tariff refunds, lower fuel costs or additional share repurchases. The brokerage said improving operational execution, easing cost headwinds and the prospect of positive traffic trends in the second half of the year create multiple avenues for earnings upside. The firm noted Dollar Tree has already received $110 million in tariff refunds and could ultimately receive several hundred million dollars during fiscal 2026. While management is expected to reinvest much of the proceeds, Raymond James believes the funds could support pricing, marketing and store investments that help drive customer traffic and sales growth. Separately, Goldman Sachs upgraded Dollar Tree to Neutral from Sell and raised its price target to $125 from $105. The bank cited improving consumer perceptions of the retailer’s pricing and value proposition, supported by data showing sentiment metrics have recovered from lows reached earlier this year. However, Goldman Sachs remained cautious, noting that traffic trends remain negative and that the stock already reflects expectations for an eventual recovery. The bank said Dollar Tree’s most frequent shoppers continue to show weaker engagement than historical levels, while competition from rivals such as Walmart, Dollar General and Five Below remains intense. Both firms highlighted Dollar Tree’s strong cash position and recent $500 million share repurchase as additional positives, though they differ on how much of the anticipated operational improvement is already reflected in the stock price. Related articles Dollar Tree upgraded on earnings upside potential despite ongoing traffic woes Citi pushes back Fed rate cuts to May after blowout January jobs report This sector is 'poised for a big, beautiful year': Truist

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the non-discretionary retail industry, including Dollar Tree (NASDAQ:DLTR) and its peers. Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift. The 9 non-discretionary retail stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results. A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices. Dollar Tree reported revenues of $4.98 billion, up 7.2% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. Dollar Tree scored the highest guidance raise but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 17.3% since reporting and currently trades at $112.42. Is now the time to buy Dollar Tree? Access our full analysis of the earnings results here, it’s free. With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof. Target reported revenues of $25.44 billion, up 6.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates. The market seems content with the results as the stock is up 2.6% si...

Dollar Tree, Inc. DLTR offers a more interesting setup after stronger earnings, higher guidance and improving execution. The stock also trades at a valuation that looks less demanding than many retail benchmarks.That does not make the buy case automatic. Traffic is still soft, cost pressure remains visible and the stock’s broader profile points to progress with limits. Dollar Tree trades at 15.39 times forward 12-month earnings. That is below the Zacks sub-industry at 31.39 times, the broader Zacks sector at 22.78 times and the S&P 500 at 21.34 times. Image Source: Zacks Investment Research This discount can appeal to investors looking for a cheaper retail multiple tied to a company with improving earnings. Still, the $118 price target implies only measured upside from the cited share price of $111.65, which keeps valuation from looking like a clear bargain. Dollar Tree’s first-quarter fiscal 2026 results changed the earnings discussion. Adjusted earnings per share rose 38% year over year to $1.74, topping expectations and showing that better execution is reaching the bottom line.The company also raised its full-year adjusted earnings per share outlook to $6.70-$7.10 from the prior range of $6.50-$6.90. That creates a stronger profit setup, especially as multi-price penetration, lower freight costs and better shrink performance support earnings momentum. Dollar Tree, Inc. price-consensus-eps-surprise-chart | Dollar Tree, Inc. Quote Dollar Tree’s financial position adds support to the investment case. The company ended the first quarter with $1 billion in cash, no borrowings under its credit facilities and no commercial paper outstanding.Free cash flow reached $392 million in the quarter. Dollar Tree also repurchased about $595 million of shares and plans $1.1 billion to $1.2 billion in capital expenditures for fiscal 2026, showing room to invest in stores, distribution and assortment while returning capital. The caution case remains meaningful. Selling, general and administrative expenses increased 50 basis points to 27.8% of total revenue in the first quarter, reflecting higher marketing costs, general liability costs and depreciation tied to store investments.Traffic is another pressure point. Comparable sales rose 3.5%, but the gain came from a 4.5% increase in average ticket while traffic declined 1%. Tariff uncertainty, higher fuel costs and transportat...

Interested in Five Below, Inc.? Here are five stocks we like better. Five Below delivered revenue and earnings results that significantly exceeded analyst expectations. Investors focused on management's cautious outlook for the second half of the fiscal year and ongoing tariff uncertainty. The post-earnings selloff may have pushed FIVE stock into oversold territory despite continued business momentum. Five Below (NASDAQ: FIVE) fell more than 13% the day after the company reported a mostly bullish Q1 2026 earnings report. The discount retailer delivered revenue of $1.29 billion. That beat expectations for $1.23 billion and, more importantly, was 32% higher year over year (YOY). The results were even better on the bottom line. Adjusted earnings per share of $2.22 beat expectations for $1.77 and were 158% higher on a YOY basis. → Buy the Dip? Broadcom's AI Moat Is Wider Than Ever The company reported a resilient consumer who is responding to the company’s digital marketing efforts. Furthermore, Five Below reported that the strength of the numbers was across all incomes, stores, and departments. The strength of the numbers wasn’t just about store traffic. The company’s margins improved based on fixed-cost leverage. → Rocket Lab Is Down 24% From Its 52-Week High—Pullback or Problem? Five Below ended the quarter with $1.1 billion in cash and investments on its balance sheet. The issue was with the company’s guidance. While Five Below raised its full-year guidance, management expressed some concern over the second half of the year. That’s when uncertainty about the health of the consumer will collide with tougher YOY comparisons. → From Runway to Riches: Victoria's Secret's New Look Five Below is known for providing a treasure hunt experience for consumers. So, it’s a little ironic that the company’s immediate problem is one that’s hiding in plain sight. The elephant in the room is the future state of the consumer. The strong quarter needs context, since earnings headlines are always backward-looking. On the earnings call, Five Below management noted that the company’s results were likely due to consumers spending a portion of their tax refunds in their stores. However, as with stock prices, past performance doesn’t guarantee future results. Five Below faces quantifiable tariff impacts that some analysts believe may be understated. But it also has a consumer who co...

Dollar Tree’s first quarter performance was well received by the market, reflecting its ability to deliver steady revenue growth and significant margin improvement despite a challenging consumer backdrop. Management credited the quarter’s results to operational progress in multi-price assortment, disciplined cost management, and improved shrink, which offset headwinds from higher fuel costs and ongoing macro uncertainty. CEO Mike Creedon highlighted that, “Our deep value and attractive price points not only enable us to best serve our core customer, they also position us to benefit from trade-in behavior as customers across multiple income cohorts become increasingly value focused.” Is now the time to buy DLTR? Find out in our full research report (it’s free). Revenue: $4.98 billion vs analyst estimates of $4.96 billion (7.2% year-on-year growth, in line) Adjusted EPS: $1.74 vs analyst estimates of $1.54 (12.7% beat) The company reconfirmed its revenue guidance for the full year of $20.6 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $6.90 at the midpoint, a 3% increase Operating Margin: 9.1%, in line with the same quarter last year Same-Store Sales rose 3.5% year on year (5.4% in the same quarter last year) Market Capitalization: $21.62 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matthew Boss (JPMorgan) asked about the main drivers behind the quarter’s margin expansion. CFO Stewart Glendinning attributed it to improvement in shrink, favorable freight, and merchandise margin gains, noting tariffs were offset by operational actions. Seth Sigman (Barclays) questioned why full-year guidance was not raised proportionally to the first quarter’s performance. Glendinning explained that persistent fuel and tariff uncertainties prompted a more cautious approach to the outlook, despite share repurchase benefits. Rupesh Parikh (Oppenheimer) inquired about observed food price increases and competitive positioning. CEO Mike Creedon clarified that price adjustments affected less than 5% of the assortment, aimed at restoring key brands and maintaining relative value through detailed ben...

Investors were spooked by the prospect that Five Below's growth rate might have reached its peak. Five Below stock sank 14% on Thursday, according to MarketSurge. Meanwhile, adjusted earnings per share were $2.22, 25% above the $1.77 looked for by Wall Street.

Retail sector CEOs have historically cited all kinds of factors in explaining operating underperformance, but their tentative tone on the Q1 earnings calls was largely justified given the uncertain macro backdrop, particularly the impact of high fuel prices on household buying power. While the headwinds have been well known, overall consumer spending trends have been stable, helping most retail companies to come out with good enough quarterly results. Market participants were particularly enthusiastic about results from the likes of Dollar Tree DLTR and Best Buy BBY. But a big contributing factor to the market’s favorable reaction to the Dollar Tree and Best Buy results was low expectations. While taking nothing away from excellent execution by the management teams at Dollar Tree, Best Buy and others in an otherwise difficult operating environment, the positive stock market follow through to the results speaks more to how beaten down expectations had become than a fundamental shift in business outlook. We had the opposite situation with Walmart WMT whose results were consistent with what we have become used to seeing from the company over the last few years, but the stock’s outperformance had likely left it priced for perfection. For more details about the overall earnings picture and evolving expectations for 2026 Q2, please check out our weekly Earnings Trends report here >>>>Looking Ahead to the 2026 Q2 Earnings Season Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ollie's Bargain Outlet (OLLI) raised its full-year earnings outlook on Wednesday, while the discount

The discount retailer reports better-than-expected quarterly earnings and raises its guidance for the fiscal year.

Dollar Tree (DLTR) reported its latest earnings report, which gave investors plenty of reason to cheer. The discount retailer delivered a stronger-than-expected fiscal 2026 first-quarter performance on May 28, topping Wall Street’s estimates and prompting management to raise its full-year profit outlook. The market responded enthusiastically, sending DLTR stock soaring nearly 18% in a single session. Beyond the headline numbers, Dollar Tree’s results offer valuable insight into the health of the American consumer. For months, economists feared that persistent inflation and rising living costs would finally force households to rein in spending. Yet Dollar Tree's performance suggests that while consumers are still willing to spend, they're simply becoming smarter and more selective with their money. As shoppers look to maximize value, discount chains are increasingly becoming their preferred destination. That trend was evident throughout the quarter. Billionaire Mark Cuban Asks Why Insurance Companies Pay $2,500 for an MRI When ‘a Center Down the Street’ Only Charges $350 The Quantum Computing Boom Is Back. IBM Proves It Is the Smartest Stock to Buy Micron Stock Is Trading at 42x Trailing Earnings. Analysts Say That’s Still Cheap. Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! DLTR’s customer traffic dipped 1% year-over-year (YOY), yet the average transaction value rose 4.5%, marking the third consecutive quarter in which shoppers spent more per visit despite fewer store trips. The trend suggests consumers are consolidating purchases, hunting for bargains, and focusing on necessities rather than impulse buys. In other words, spending remains resilient, but the way consumers spend is changing. That dynamic makes Dollar Tree's earnings report particularly noteworthy for investors. The company's strong performance highlights the growing appeal of value-focused retail, but it also raises broader questions about consumer health. If shoppers continue trading down in search of lower prices, Dollar Tree could remain a beneficiary of the trend. Dollar Tree, based in Chesapeake, Virginia, is one of North America's largest value retailers, building its reputation on affordability, convenience, and a treasure-hunt-style shopping experience that keeps customers coming back. The company operates more than 9,200 stor...

Image source: The Motley Fool. Thursday, May 28, 2026 at 8 a.m. ET Chief Executive Officer — Michael Creedon Chief Financial Officer — Stewart Glendinning Director of Investor Relations — Daniel Delrosario Daniel Delrosario: Thank you, operator. Good morning, everyone, and thank you for joining us today to discuss Dollar Tree's first quarter fiscal 2026 results. With me today are Dollar Tree's CEO, Mike Creedon; and CFO, Stewart Glendinning. Before we begin, I would like to remind everyone that some of the remarks that we will make today about the company's expectations, plans and future prospects are considered forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated by our forward-looking statements. For information on the risks and uncertainties that could affect our actual results, please see the Risk Factors, Business and Management's Discussion and Analysis of Financial Condition and Results of Operations section in our annual report on Form 10-K filed on March 16, 2026, our most recent press release and Form 8-K and other filings with the SEC. We caution against reliance on any forward-looking statements made today, and we disclaim any obligation to update any forward-looking statements, except as required by law. Also during this call, we will discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP items to the most directly comparable GAAP financial measures are provided in today's earnings release available on the IR section of our website. These non-GAAP measures are not intended to be a substitute for GAAP results. Unless otherwise stated, we will refer to our financial results on a non-GAAP basis. Additionally, unless otherwise stated, all discussions today refer to our results from continuing operations and all comparisons discussed today for the first quarter of fiscal 2026 are against the same period a year ago. Please note that a supplemental slide deck outlining selected operating metrics is available on the IR section of our website. Following our prepared remarks, Mike and Stewart will take your questions. Please limit yourself to one question and one follow-up question. And with that, I'll turn the call over to Mike. Michae...